The six hurdles: Lost time, student loans, difficult relationship with money, status markers, high income taxes, insufficient financial education.
After advising physicians on finances for a few years, I thought “I would never encourage my kids go to med school.” The nurses seemed to be able to accumulate wealth at a faster rate than the doctors.
Have you ever felt like you were stuck in a destructive pattern that keeps you from achieving your money goals?
The culprit: emotions about money.
Our emotions often get in the way of making good decisions. In fact, money decisions are based 90% in emotion, and only 10% in logical reasoning.
Strong financial health may grant broader professional freedoms, and may help mitigate against burnout. Financial education is an overlooked but important curriculum component for physicians.
Learning and implementing strategies about debt, behavior, investing and asset protection can get physicians to financial independence earlier.
Elements of a comprehensive financial literacy framework for physicians:
1. Deliver three courses on personal finance:
At the end of medical school, late in residency, and at the end of fellowship.
2. Personal finance course should extend 8-10 hours and cover investing, insurance, asset protection, home purchase, college saving.
3. Use an objective, expert instructor who does not have conflicting agenda of selling financial products.
Researchers found that most first-year and fourth-year medical students had low financial literacy, and were not well prepared to manage personal finances. Students could only answer 47% of these financial literacy questions correctly. How many will you get right?
